Annex 2 : About the illegal construction
of the water reservoir in the Republic of Bashkortostan supported by foreign
capital

Annex 3: Reference on violations
of the present Russian legislation concerning construction of the Yumagusinsky
water-reservoir

(Republic of Bashkortostan)

Annex 4: Anticipated Positive and
Negative Results of the Construction of the Yumaguzinsky Water Reservoir
(the Republic of Bashkortostan) after Assessment of its Impact on the Environment
(text in black ink) and Additional Information

Annex 1: Chronology of the Yumaguzinsky
Water Reservoir Construction. (data and translation by Greenpeace Russia)

The 80’s. The project of the Ishgutanovsky water reservoir
construction on the middle Belaya River in Bashkiria was developed and
the construction began. However, in 1989 this project received a negative
verdict of the State Ecological Expertise and the construction of the reservoir
was stopped.

August 1998. The Republic of Bashkortostan Government
resumed the elaboration of a project for construction of a water reservoir
on the middle Belaya River.

September 11, 1998. The Government of the Republic of
Bashkortostan ruled: to prepare in the shortest possible time the project’s
technical and economic grounds, the project and working layouts for the
reservoir construction, to choose the general contractor, find financial
resources for the activities of the preparation period and to start construction,
beginning from the second quarter of 1999.

September 18, 1999. By the decision of the Bashkortostan
Presidential commission the authorities, related to project and preparation
activities, as well as their funding, were distributed among different
organizations.

December 21, 1998. The resolution of the Government of
the Republic of Bashkortostan „On Beginning of Construction of the Yumaguzinsk
Water Reservoir on the Belaya River“: „to permit activities by some of
the working layouts until the reservoir project is approved“, to permit
payments for the equipment, purchased for the reservoir construction activities,
to provide for costs of construction of temporary buildings and forest
cuttings (on the territory of a National Park!); till January 1, 1999 (!)
to carry out assessment of the environmental impact. Besides: a) transformation of the National Park forest
lands into non-forest was not completed (Reply Letter #??-347/217 from
the Federal Forestry Service of the Russian Federation, dated 30.03.1999);
b) the issue of a state ecological expertise was not at all considered,
in spite of the fact that the obligatory state ecological expertise of
such objects as the Yumaguzinsk Water Reservoir, must by all means be conducted
on the federal level.

December 1998. The construction started along with
the project exploration activities.

March 15, 1999. A council meeting at the office
of the Head of the Reforestation and Specially Protected Territories Department
of the Federal Forestry Service with participation of representatives from
some Russian Ministries and State Committees (the Ministry of Agricultural
Production, the Ministry of Economy, the State Land Committee, the State
Committee for Fishery, the State Committee for Environmental Protection).
The decision: the activities, related to construction of the Yumaguzinsky
water reservoir on the territory of the „Bashkiria“ National Park, violates
the existing legislation.

April 7, 1999. The State Committee for Environmental
Protection issued the Order to suspend the activities, related to construction
of the Yumaguzinsky water reservoir on the territory of the „Bashkiria“
National Park, of #03-21/25-125, until a positive conclusion of the State
Ecological Expertise was received. The Order was not executed and the construction
activities continued.

April 29, 1999. The Meleuzovkoye Regional Department
for Ecological Security filled out a Deed on legislation observation under
project exploratory and preparatory activities, related to the construction
of the Yumaguzinsk water reservoir. The conclusion: the construction activities
were carried out on a specially protected territory of the „Bashkiria“
National Park without a positive conclusion of the State Ecological Expertise,
land allocation, which is a violation of the existing legislation of the
Republic of Bashkortostan.

June 19, 1999. In a district center of the Burzyansky
region the local population arranged a rally against the Yumaguzinsky water
reservoir construction.

June 23, 1999. Resolution #180 of the Government
of the Republic of Bashkortostan, permitted issuing of felling tickets
for an area of 1,048 ha before transformation of the forest lands into
non-forest.

July 4, 1999. A joint press conference of the State
Committee for Environmental Protection and Greenpeace Russia in Moscow.
The conference gave a negative feedback to the activities by the Bashkortostan
Government, related to the construction of the Yunaguzinsky water reservoir.
The Resolutions by the Bashkortostan Government and the construction activities
were declared illegal.

August 17, 1999. Resolution #263 of the Bashkortostan
Government „revised the borders of the „Bashkiria“ National Park“ and stated
that „the activities, related to the construction of the Yumaguzinsky water
reservoir, are carried on outside of the park’s borders“. Such a resolution
is completely illegal, because all national parks are the Federal property
and only the federal authorities can draw decisions on any changes in their
borders.

August 18, 1999. Resolution #2 of the State Committee
for Environmental Protection imposed a fine on the Director of the OOO
„Yumaguzinskoye Water Reservoir“ Ltd. for failure to execute an Order of
the Federal State Ecological Control Agencies to stop the reservoir construction.

August 18, 1999. The State Committee for Environmental
Protection issued Order #01-21/18-160 on suspension of financing
of the activities, related to the construction of the Yumaguzinsky water
reservoir.

September 9, 1999. A reply from the BashKreditBank
about suspension of financing operations, connected to the OOO „Yumaguzinskoye
Water Reservoir“ Ltd.

November 9-12, 1999. The General Prosecutor’s Office
of the Russian Federation checked the legal status of the Yumaguzinsky
water reservoir construction.

The check discovered construction of roads, a temporary
dormitory, a ready-mix (concrete) plant, preparation of the base for the
dam body and construction of a tunnel for a bottom water outlet. The forest
was cut up to the 253m landmark and at a 650m distance from the dam up
the Belaya River. The forest was cut in the shore line (a water protection
zone) 150-300m wide. In general, 200ha of forests had been cut with the
total volume of hard wood being 12,691m3 and birch, aspen and alder – 27,776m3.
The cuttings were carried out under felling tickets that had been issued
in violation of the existing forest legislation of the Russian Federation,
as well as breaking the felling ticket issuing procedure. The damage only
from the cuttings reached by November 10-12 RUR38,385,580.8 (US$1,476,368.5)due
to the fact that Resolution #263 of the Bashkortostan Government, dated
August 17, 1999, transformes 1,156.6ha of the forest lands into non-forest,
the total damage from the forest cuttings might go up to RUR221,791,885.9
(US$8,369,505.1).

Based on the violations that the check discovered, the
following records were filled out:

November 10. An officer of the Bashkortostan Environmental
Protection Prosecutor’s Office filled out a record of violations under
the reservoir construction.

November 11. A record of the ecological violation
for a failure to execute an Order of the Federal State Ecological Control
Agencies to stop the reservoir construction.

November 12. A record of the ecological violation
for realization of a subject to the State ecological expertise without
a positive conclusion of the State ecological expertise of the federal
level. The violation consists of the preparation of the base for the body
of the Yumaguzinsky water reservoir dam and construction of a tunnel for
a bottom water outlet.

November 1999. The General Prosecutor’s Office
of the Russian Federation considered the question of filing a lawsuit against
the Yumaguzinsky ware reservoir construction. The papers for the State ecological expertise to be carried
out, have not been submitted.

Annex 2 : About the illegal construction
of the water reservoir in the Republic of Bashkortostan supported by foreign
capital(data and translation by Greenpeace Russia)

From the Autumn of 1998 the government of the Republic
Bashkortostan have come to a series of illegal decisions and resolutions
concerning construction of Yumagusinsky water reservoir on the Belaya river.
The construction began in December, 1998 taking place within the territory
of „Bashkiria“ National Park. Once the citizens of the Republic witnessed
another reservoir construction at this very place, stopped by the State
Environmental Protection Committee of the USSR. That time the water reservoir
had been called „Ishtuganovsky“.

The history of construction of the water reservoir in
the midstream of the Belaya river In the 80ies the project of the Ishtuganovsky water reservoir
had been prepared and construction begun. However, in 1989 the project
received negative appraisal of the State Expertise (in accordance with
the Russian legislation construction project of this scale must pass the
ecological expertise). After this the construction works were stopped.
Reasons for giving the project negative appraisal were the following: 1) The project didn’t correspond to the main – ecological
- purpose, as one of the basic reasons for creating the Ishtuganovsky
reservoir was to dilute waste water of plants and factories situated along
the riverbanks 2) The construction process and flooding would sustain
damage to natural and archeological monuments 3) The problem of water deficiency and the necessity
of regulating the runnel (the calculation data) was inflated, and the regulating
itself wouldn’t exercise function of the flood protection 4) The energisation of karst process, common at this
territory, can lead to unpredictable consequences – earthquakes, dam breakthrough,
water transfer into sinks, which would make it impossible to maintain the
determined (necessary) water-level.

The new construction: Yumagusinsky water reservoir In August,1998 the Government of the Republic of
Bashkortostan restored the project of construction of water reservoir
in the river Belaya midstream. The localization of the reserve was nearly
the same, but the capacity and the area reduced, and also the name: it
would be called „Yumagusinsky“. Exactly within the new project’ submersion
territory lay habitats of the bird species listed in the Red Book of Russia,
rare and endangered plant species, archeological monuments (sites and caves). Realization of the present project will lead to
destruction of natural, historical and cultural values pretending to be
inscripted into the UNESCO World Heritage List. Natural complexes of the
„Bashkiria“ National Park“ (category II according to IUCN classification)
and the „Shulgan Tash“ nature reserve (category I) would be partially destroyed.
Habitats of species listed in the Red Book of Russia, IUCN and the CITES-Convention
would be destroyed (Appendix 1). The submersion territory is the Globally
Important Bird Area ?208 ‘Ru. Very likely the water reservoir will affect
the population’s health. Of a particular danger are rocks that form the
bed and the banks of the projected Yumagusinsky water reservoir. Mostly
(for about 90%) they consist of limestone and dolomite – water-soluble
rocks, that are divided by tectonic gaps. This means that the banks will
be eroding rapidly, and the present caves will be enlarging first of all
because of suffosion. This might result in: 1) flow of water from the Yumaguzinsk
Water Reservoir to the Nugush valley with its Nugush water reservoir; 2)
rockslides and earthquakes and, as a result, ruptures. It can lead to the
rock-falling, crumbling earthquakes, and as a result, to reservoir break-through.
Looking forward we can say that the Estimation of Ecological Effect (EEE)
made in Spring, 1999 suppose hydrodynamic wreckage to be the most dangerous
(and possible!) in case of break-through of the reservoir. In this case,
in 26-29 hours the wave will reach the city of Sterlitamak and submerse
84 localities, including the city of Meleuz, Ishimbay, Salavat – the biggest
European oil-extraction, oil-processing and chemical industry centres. Resolutions of the Government of the Republic of
Bashkortostan, concerning Yumagusinsky water reservoir, contain directions
to begin construction process without any project, according to separate
work-schemes, without passing State Ecological Expertise of the federal
level (which is necessary according to the Russian legislation). In accordance with Resolution
the construction process have begun at the end of December, 1998 and continues
till the present day without approved project and the positive estimation
of Ecological Expertise of the federal level, violating the present Russian
legislation. The construction takes place on the territory of the National
Park, which also is a rude violation of the Russian legislation. Many of the federal structures do not take the necessary
measures to stop the illegal process. For instance, all the Russian National
Parks are subordinate to the Federal Forest Service of Russia. Admitting
the illegal way of workmanship, which take place at the territory of the
„Bashkiria“ National Park, this organ takes no steps to protect lands of
the Park and the logged forest. The State Committee for Environmental Protection gave
directions to suspend the construction process and for ceasing it’s financing.
Despite this, the construction continues for the money of foreign creditors
and investors. It is well known that in April, 1999 UNIDO (United Nations
Industrial Development Organization) signed an agreement of a financing
the Yumagusinsky reservoir. Until now UNIDO didn’t refuse from taking part
in this project. Unfortunately, we couldn’t find out what other organizations
may give credits and invest the construction of the reservoir, and also
support the Bashkortostan’ organizations that may be interested in the
process.

Reference For the last decades the Republic of Bashkortostan
has become one of the most emergency-liable region in Russia. Some of the
emergency situations of the last few years were connected with water-reservoir
exploitation and karst-depressions. For instance, in August, 7, 1994, there was a breakthrough
at Tirlyansky water-reservoir on the tributary of the Belaya river (Beloretsky
region). According to the official data, the overflow of 8.6 million cubic
meters of water flooded 4 settlements. 29 men died, 786 were left homeless.
Total damage exceeded 17.5 million dollars. In 1997 karst-depressions in Auragusinsky and Karamaskalinsky
regions of the Republic have brought damage exceeding 140 000 dollars.

Annex 3: Reference on violations
of the present Russian legislation concerning construction of the Yumagusinsky
water-reservoir (Republic of Bashkortostan)(data and translation by Greenpeace Russia)

Land allocation, project-prospecting works conducting,
water-reservoir construction roughly violate the present legislation of
Russian Federation and the Republic of Bashkortostan. By the present time the following laws are violated: The Constitution of Russian Federation (§71) Water Code of RF (§36) Land Code of RSFSR (§90) Forest Code of RF (§63, 65) Federal law "On environmental protection" (§60,
63 item 3, 65, 70) Federal law "On ecological expertise" (§9) Federal law "On fauna protection" (§20, 24) Ecological Code of the Republic of Bashkortostan
(§62, 65 item 3) Land Code of the Republic of Bashkortostan
(§32, 34, 107)
Forest Code of the Republic of Bashkortostan (§18) Law of the Republic of Bashkortostan "On especially protected
nature territories of the Republic of Bashkortostan " (§15 item 1,2) Law of the Republic of Bashkortostan "On fauna protection"
(§21) Law of the Republic of Bashkortostan "On ecological safety
of the Republic of Bashkortostan" (§13)

Violations of the following acts provide management and
criminal responsibility:

Comments. 1. The Belaya river defined area of water lays within
the territory of the Republics of Bashkortostan and Tatarstan. According
to Water Code of RF (§36) the surface water objects which pass the
territories two or more subjects of Federation, are considered to be federal
property. Management for federal property is done by the Government of
Russian Federation. The Federal law "On especially protected nature territories"
(§15 item 1,2) notes that national parks apply exclusively to federal
property objects. According to the Constitution of Russian Federation (§71)
federal state property and its management applies to Russian Federation. The proper representative bodies never came to decision
for construction of the reservoir. Thus, decisions and decrees of the Government of the
Republic of Bashkortostan contradict the Constitution of the Russian Federation,
the Water Code of the RF, the Federal law "On especially protected nature
territories of the Republic of Bashkortostan ".

2. According to the Land Code of RSFSR (§90) territories
of state nature reserves apply to nature reserve fund. On the territory of nature reserves and national parks
any activity, not connected with conservation and study of nature complexes,
and not provided by Russian legislation, is prohibited. On other territories
of the nature reserve fund the limited recreational and agricultural activity
is permitted if according to the existing regime. The „Bashkiria“ National Park regime doesn’t allow any
project-prospecting works for reservoir construction, as long as such activity
is not connected with preserving and studying of nature complexes, and
also don’t match with National Park’ recreational and management activity.

3. According to Federal law "On environmental protection"
(§60) and the Environmental Code of the Republic of Bashkortostan
(Art.62) nature-reserve fund land withdrawal is prohibited. According to Federal law "On environmental protection"
(§63 item 3), Ecological Code of the Republic of Bashkortostan (§65
item 3), Law of the Republic of Bashkortostan "On especially protected
nature territories of the Republic of Bashkortostan " (§15 item 1,2),
any activity within the borders of National Parks, that contradicts the
aims and tasks of National Park organisation, and affects the environment,
is prohibited. According to the same Law (§15 item 2 b,c,e,f) any
activity within the borders of National Parks, that can bring harm to nature
complexes, any objects of flora and fauna, objects of historical and cultural
significance and that contradicts the aims and tasks of National Park,
is prohibited. This activity includes activity disturbing soil cover and
geological exposures, changing the hydro-regime, also the road and electricity
transmission lines construction, the construction and exploitation of management
and dwelling structures which are not connected with the National Park
functions, and also traffic and parking of mechanical transport abilities,
which are not connected with the National Park functions. The reservoir construction will lead to nature-reserve
fund land withdrawal, and the project-prospecting works would bring harm
to the environment, flora and fauna species included into „The Red Book
of Russia“. The project-prospecting works and the construction process
contain indications to a crime, envisaged in the Criminal code of RF (§262).

4. According to the Federal Law "On especially protected
nature territories " (§9), any activity within the borders of State
Nature Reserve, that contradicts the aims of State Nature Reserve, and
its special protection regime, stated in the Regulations of the State Nature
Reserve, is prohibited. Regulations of the State Nature Reserve prohibits changing
of the territory hydro-regime, thus the reservoir construction is the violation
of the Federal Law "On especially protected nature territories " (§9).

5. Under the Forest Code of the Republic of Bashkortostan
(Art.18) and the Forest Code of the Russian Federation (Art.65), allocation
of sites for construction of enterprises, buildings and other objects that
can influence the state and reproduction of forests, should be based on
conclusions of the state ecological expertise. According to the Federal law "On ecological expertise"
(§11) any documentation for changing the functional status and also
the form character of land of the federal level use, including transfer
of forest 1 group lands into non-forest for reasons not connected with
forestry management, should obligatory pass the State Ecological Expertise
on the level of RF. According to the Federal law "On ecological expertise"
(§12), any normative legal act drafts, which can lead to affecting
of the environment, should obligatory pass the State Ecological Expertise. The Ministry Cabinet of the Republic of Bashkortostan
Decree on beginning of the project-prospecting works within the borders
of „Bashkiria“ National Park, which is federal property and related to
Russian Federation, has not pass the State Ecological Expertise of federal
level. The decisions and resolutions of the Government of the
Republic of Bashkortostan contradict the Republic of Bashkortostan Law
“On Ecological Safety of the Republic of Bashkortostan”. Article 13 of
this Law says that the state and regional authorities and their officers
cannot draw and implement decisions that permit economic and other activities,
directly of indirectly influencing environment, without a positive conclusion
of the state ecological expertise, as well as without a license (permit)
for such activities, issued in the appropriate order.

6. According to the Federal law "On environmental protection"
and the Federal law "On ecological expertise" any Technical Economical
Basis and construction project of any structure which can affect the environment
, should pass the Ecological Expertise. Same laws prohibit any project
realization without positive conclusion of the State Ecological Expertise. In the case of the water-reservoir construction on the
Belaya river the positive conclusion of the State Ecological Expertise
is necessary. But at the present time the neither the project, nor the
Technical Economical Basis has received the positive conclusion of the
State Ecological Expertise. Nevertheless, the works are being carried out
at present time. A considerable detriment has already been done, which
fall under the criminal affair according to Criminal code of RF (§246,
260 p.1). Despite this, Ministry Cabinet of the Republic of Bashkortostan
Decree dated 11.09.98 #190, Ministry Cabinet of the Republic of Bashkortostan
Order dated 01.10.98 #5-40p and Ministry Cabinet of the Republic of Bashkortostan
Decree dated 21.12.98 #293 order to begin realization, financing and crediting
the State Ecological Expertise object without receiving the positive
conclusion. These violations are envisaged in the Federal law "On ecological
expertise" (§30) and are subjected to cancellation.

7. According to Forest Code of RF (§63), transfer
of forest 1 group lands into non-forest for reasons not connected with
forestry management, forest fund use, and/or withdrawal of forest lands,
if related to 1 group forests, is fulfilled by the Government of Russian
Federation. Forests of National Parks and riverside forests relate to 1
group forests. The reservoir construction will require withdrawal of
1 group forest lands, and the Government of Russian Federation hasn’t come
to such decision. Thus the above activity contradict the Forest Code of
RF. Under the Land Code of the Republic of Bashkortostan
(Art.32, 34) the removal of lands, covered by the first group forests,
can be allowed only in some cases and for the purposes, connected to implementation
of international commitments, when some valuable natural resources are
discovered under a plot, as well as in cases of road, power line and main
pipeline construction. There no other cases when the Republican legislation
can allow removal of lands, covered by first group forests. Besides, Article
107 of the same Law prohibits any activities on lands, valuable from the
point of view of environmental protection, if these activities contradict
the target allocation of these lands.

8. According to the Federal law "On fauna protection"
(§20) and the Republic of Bashkortostan Law “On Animal World” (Art.21)
the State Ecological Expertise is the necessary measure for protection
of fauna. It is fulfilled according to the legislation of Russian Federation
and precedes coming to any decisions, which can influence fauna and its
areals. According to the Federal law "On fauna protection" (§24)
any activity which can lead to death, population reduction or areal impact
of fauna species included into „The Red Books“, is not permitted. According to the Federal law "On environmental protection"
(§65) using species of flora and fauna included into „The Red Books,
is not permitted. Also any activity which can lead to population reduction
or areal impact of species included into „The Red Books“, is prohibited. The State Ecological Expertise had not preceded the Ministry
Cabinet of the Republic of Bashkortostan Order dated 01.10.98 #5-40p and
Ministry Cabinet of the Republic of Bashkortostan Decree dated 21.12.98
#293. The project-prospecting works and the reservoir construction lead
to population reduction and areal impact of fauna species included into
„The Red Book of Russia“. Thus, the above activity contradicts the Federal
law "On fauna protection".

9. In connection with large amount of violations of the
present legislation, the Vice-Head of the Major State Inspector of RF for
Environmental Protection, the Vice-Head of the State Committee for Ecology
of RF, A.M. Amirkhanov gave Order #03-21/25-125, demanding the Chief-Contractor
of OAO „Yumagusinsky water-reservoir“ to hold up any activity connected
with the Yumagusinsky water-reservoir construction and contradicting the
aims of „Bashkiria“ National Park until receiving the positive conclusion
of The State Ecological Expertise of federal level. According to § 70 of the Federal law "On environmental
protection", orders of official functionaries of the state ecological control
should be executed compulsory by any natural or juridical person. Nevertheless, the construction process continues, and
OAO „Yumagusinsky water-reservoir“ gave no answer to the Order. The Federal law "On environmental protection" (§84)
and the Code of RSFSR "On management delinquency" (§165/9) envisage
responsibility for violation of the above orders. Moreover, in connection
with obvious damage making, the above activity contain indications to a
crime, envisaged in the Criminal code of RF (§330). Annex 4: Anticipated Positive and Negative Results
of the Construction of the Yumaguzinsky Water Reservoir (the Republic of
Bashkortostan) after Assessment of its Impact on the Environment (text
in black ink) and Additional Information and Comments by Greenpeace Russia (bold italic text).

Annex 4: Pros and Conts of the
Construction of the Yumaguzinsky Water Reservoir (the Republic of Bashkortostan)
after Assessment of its Impact on the Environment (text in black ink) and
Additional Information and Comments by Greenpeace Russia(data and translation by Greenpeace Russia)

4,300ha will be flooded, including: - 320ha of ploughland - 850ha of hayfields (low hay yield of not more than
10 centners per ha - 760ha of pastures (not more than 15 centners) - 23 70ha of forests

The water deficit problem will be solved (115 million
m3 a year). This problem hinders the economic development of the region

Neither the population nor the industry has any
water deficit and is not going to have in the near future. In such a situation
no one seems to consider the ways of sewage treatment and recycling of
water in the systems of industrial water supply, or alternative variants
of water supply in the low water period.

Cheap electric energy

According to the official data, by January 1, 1999
the Republic of Bashkortostan had Russia’s tenth place in the lowest prices
for electric energy (Russia consists of 89 regions). Besides, some alternative
electric energy sources are to be introduced in the Republic of Bashkortostan.
According to the official information, for example, several wind power
plants are to be put into operation in Bashkortostan. Their single unit
power will reportedly reach 100-600 kW/h.

The impact of the reservoir on the quality of surface
and underground waters will be negligible due to their similarity.

The flooding will cover the habitats of 27 plant species,
inscribed into the Red Book of the Republic of Bashkortostan and two of
them will disappear completely.

The populations of three plant species, included
into the Red Book of the Russian Federation, will disappear under water.
More than 60 species whose populations will be in the flood zone, are on
the list of rare plant species of the Urals, six of them being endemic.

The populations of bleak, crucian carp and tench will
significantly increase

The populations of grayling and salmon trout. From
a report of the „Shulgan-Tash" natural reserve about the impact of the
Yumaguzinsky water reservoir on environment: „The habitats of the most
valuable and rare fish species (salmon trout, grayling, trout, sculpin)
will be destroyed. Sculpin is threatened by the full extermination. The
dam construction will make bream and undermouth migration impossible.

- all the invertebrates, living in the soil and in the
roots, will die- the areas where several couples of rare birds have
their nests will be flooded (152)- some amphibia, reptiles and small mammals will also
die- habitats of large mammals will be destroyed.

The water reservoir is not situated in the zone of a
constant air pollution of the nearest cities. So, in spite of a small distance
from industrial enterprises, the water reservoir can become a very good
recreation area.

The human impact on the territory of the National
Park will be several times higher, which will result in a situation when
after the flooding some unique ecosystems and populations of rare bird
species will be on the verge of extinction.

26 caves will be flooded, including 13 caves that used
to be inhabited (5 of the have been examined) and that now are very valuable
from the historic point of view. 60 historic sites will also be flooded.

From a report of the „Shulgan-Tash" natural reserve
on the impact of the Yumaguzinsky water reservoir on environment: „The
karst caves for 7 bat species, 3 of which are included into the Bashkortostan
Red Book, will decrease by 20%. Due to a higher level of underground waters
the flow through the unique Katuk-Sumgansky cave complex will increase
that might have some unpredictable consequences".

Under the reserve construction 250,000m3 of timber will
be processed.

Some unique broadleaf forests that still exist
in Europe on the Eastern border of their modern distribution, will be cut.
In these forests the wild hive beekeeping is a traditional home industry
in Bashkortostan. This kind of wild bee breeding still exists only in Bashkortostan.

The damage only from the cuttings reached by November
10-12 RUR38,385,580.8 (US$1,476,368.5)due to the fact that Resolution #263
of the Bashkortostan Government, dated August 17, 1999, transformes 1,156.6ha
of the forest lands into non-forest, the total damage from the forest cuttings
might go up to RUR221,791,885.9 (US$8,369,505.1).

The soil erosion will be insignificant, besides, the
rate of bank washing out by the Belaya River will become lower.

Taking into account the fact that the bedrock that
the shores of the future water reservoir consist of, is mostly limestone
and dolomite (water-soluble), the level of the banks washing out will probably
be rather high.

A wonderful recreation complex with significant capacities.

There will be a necessity of money allocation for environmental
protection measures and the costs will be constantly growing.

A significant part of places of attraction and recreation
will be lost (caves, mountain landscapes, routes for water tourism).

New jobs will be created at the recreation complex, integrated
hydroscheme, and for environmental protection measures

There will be a necessity to develop a complex of environmental
protection measures, aimed at soothing the negative impact of the reservoir
construction on environment:- damage minimization under the reservoir construction;- reliable performance of the integrated hydroscheme;- conservation of biodiversity;- improvement of the population’s living conditions;- a necessity of ecological monitoring;- development of a list of ecological restrictions;- sanitary safety.